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Flashcards in Investments Exam Deck (16):
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Diversification

Tributing your money through variety of investments

1

Corporate stock

Unit of ownership in a company

2

Stockholders

Investors who own shares of stock in a company

3

Preferred stock

A non voting share of stock with a fixed dividend

4

Common Stock

A voting share that does not pay a set dividend

5

Brokerage firm

A company that specializes in helping people buy and sell stocks

6

Stock exchange

Where orders to buy and sell stock are sent and carried out (New York stock exchange)

7

Nasdaq

Electronic system that links brokerage firms

8

Junk bonds

Corporate bonds that are high risk

9

Mutual fund

A business that pools money from people to invest in many ways

10

Tax deffered

Postpone paying tax on he income you invest until you retire

11

401(k) plan

Tax deferred retirement plan that many employers offer their employees

12

Individual retirement account (IRA)

A personal savings plan with deferred tax benefits

13

3 ways investors buy and sell a stocks

NASDAQ, Stock exchange, internet

14

4 advantages to mutual funds

Diversification, professional management, minimal transaction cost, extra services

15

Disadvantage of mutual funds?

High costs